Venezuela Economy Weakened by Oil Prices

According to The Guardian, since oil is about all that Venezuela’s exports and current oil prices of just over $45 a barrel, the country will find it hard to pay for imports. Which involves selling barrels above $100 each, to balance the import/export books. A report by Aserne, a consultancy firm, looked at how vulnerable oil producing countries were to low oil prices.

The firm identified eight countries in the “red zone” – Iraq, Mongolia, Zambia, Angola, Nigeria, Algeria, Gabon, and Venezuela being the most vulnerable, due to lowering water levels at Guri Reservoir, the main hydroelectric dam, causing frequent blackouts.
The results as explained by Jose Manuel Gonzalez were measured by levels of public debt, size of budget deficit, current account deficit, gross domestic product per head of population, and foreign exchange reserves.
According to IMF (International Monetary Fund) forecasts, the recession will intensify in 2016, but there has been a recent rise in oil, making this figure look pessimistic.
Because Venezuela lacks the foreign currency to pay, there will be a shortage of imported goods. Also inflation looks probable, which will drive capital owners out of the country.